Four years ago financial institutions across the country implemented opt-in strategies for their overdraft privilege programs as a result of Reg E. Many institutions treated Reg E implementation as a one-time event and, with each passing year, their focus on overdraft privilege communication has dwindled, letting accountholders and dollars slip through the cracks. Getting overdraft privilege programs back on track requires proper staff training and ongoing communication with accountholders.

Accountholder acquisition at financial institutions often depends on major life-changing events such as a new job, marriage or moving; however, the unique circumstance surrounding college students makes them a prime target demographic for new accountholder acquisition. Financial institutions can capitalize on this opportunity by providing students with tools to succeed on their own financially. Most college students are looking for three things before they head off to school: a new bank, an accessible checking account and financial education.

There are no one-size fits all overdraft privilege programs. Each overdraft privilege program needs to be unique to your financial institution and provide your staff with proper training. Through reasonable fees, expectations and conservative overdraft limits, your financial institution can provide accountholders with a valuable customer service they appreciate.

Hi, I’m Joe Gillen CEO and Founder of Pinnacle Financial Strategies. In the interests of full disclosure, we at Pinnacle provide community banks and credit unions with consumer-focused overdraft programs that are successful, efﬁcient, and 100% compliant. We believe that consumers deserve the freedom to choose an overdraft privilege product that is fairly administered, delivers real value and provides a genuine consumer service, and is a useful tool in dealing with unexpected financial challenges.

While many financial institutions have let their overdraft privilege programs slip by the wayside after the implementation of Reg E in 2010, others have achieved success using fully disclosed, automated overdraft privilege programs. Good overdraft privilege programs provide your accountholders with stability and convenience while avoiding the embarrassment of a returned item. While not all overdraft privilege programs are the same, a specialized program that fits your financial institution provides a distinct consumer service that your accountholders value.